Contributor Post Created with Sketch. Failing While It Counts

 

GogogoOne of the few blessings of the Obama Administration is that it’s failed fast enough to count. If the president’s withdrawal from Iraq hadn’t been quite so rushed, things might have stayed tolerable long enough for the blame could be put on his successor’s shoulders. And as Peter Suderman describes at Reason, much the same seems to be happening with his signature legislation:

Aetna said it expected to lose about $300 million on the [Health Care Exchanges]. UnitedHealth estimated losses on exchange plans in the range of $650 million. This is not a problem that is limited to big, profit-seeking insurance companies: The majority of the non-profit co-op plans created under the law have failed, citing an inability to pay claims using premium revenues. This is simple business math. For insurers to operate on the exchanges, they have to bring in sufficient revenue to cover their claims. Some of them might be willing to accept losses up front on the promise of returns over time. But the losses can’t go on forever.

More:

Individual insurance premiums have spiked all over the country. Far fewer people have signed up for coverage than expected, with sign-ups undershooting Congressional Budget Office estimates by about 40 percent. The people who have signed up, meanwhile, have tended to be sicker and more expensive to cover, according to health insurers. “For every dollar we brought in last year, we paid out $1.26 for medical care,” Michael E. Frank, the president of Blue Cross and Blue Shield of Montana, told The New York Times this week. “In the first six months of this year, we have already paid $4.17 million in medical costs for the top 10 individuals. That’s $70,000 a month for those individuals.”

And even with the mandate in place, some people appear to be gaming the system. A top actuary for insurer Highmark told the Times that in Pennsylvania, roughly 250 of its beneficiaries on had already incurred more than $100,000 in expenses this year. “People use insurance benefits and then discontinue paying for coverage once their individual health care needs have been temporarily met,” he said, driving up the cost of coverage for everyone. Last year, UnitedHealth also indicated that individuals buying coverage and dropping it was driving losses.

As @kidcoder pointed out this morning, it’s just this side of possible that the NSA learns its lesson from the latest round of disclosures. There’s no hope that the Left will learn anything from the ObamaCare mess, but maybe the American people will.

Photo Credit: This is a screenshot taken from an optical disc, television broadcast, web page, computer software or streaming media broadcast. Copyright holder: Warner Brothers, Fair use, https://en.wikipedia.org/w/index.php?curid=3558294

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  1. Boss Mongo Member

    What a bitter pill: that we’re thankful POTUS is failing fast enough that he might possibly almost come close to bearing a scintilla of blame for his actions as chief executive.

    • #1
    • August 18, 2016, at 8:10 AM PDT
    • Like
  2. BrentB67 Inactive

    Some credit where it is due. This problem was forseen by Obamacare’s architects and they built in federal reimbursement for the private insurers.

    The Republicans in the Senate, I believe led by Sen. Rubio, carved out the ability for the federal government to reimburse these losses. Absent that legislation this would not be a story.

    Hard to say what comes of the ACA, but given the number of Republicans intent on fixing it I expect this malignant tumor to fester much longer.

    • #2
    • August 18, 2016, at 8:10 AM PDT
    • Like
  3. BrentB67 Inactive

    Boss Mongo:What a bitter pill: that we’re thankful POTUS is failing fast enough that he might possibly almost come close to bearing a scintilla of blame for his actions as chief executive.

    I want to think this is the case, but given that history tends to be written by progressives and the media of the day I expect no criticism whatsoever outside of the fact that he didn’t use even more executive orders and force bigger programs through Congress when Democrats held both houses.

    • #3
    • August 18, 2016, at 8:12 AM PDT
    • Like
  4. JimGoneWild Coolidge

    Wow! A failed government program. Let’s look it up in the old book of How To Fix Government Mistakes (Secret Edition) .. give me a minute .. reading .. reading .. Oh. Here it is. I’ll read out loud so everyone can hear it:

    1. Spend more money
    2. Make more laws
    3. Spend more money
    4. Don’t admit the mistake (unless you can blame Republicans)
    5. Spend more money
    6. Hire a czar
    7. Spend more money
    • #4
    • August 18, 2016, at 8:23 AM PDT
    • Like
  5. Susan Quinn Contributor

    We should call him Teflon Obama. I doubt that this disaster will tarnish his image. We have seen so many failures and yet his numbers are decent. Makes no sense, unless you’re on the Left. They love the man.

    • #5
    • August 18, 2016, at 8:24 AM PDT
    • Like
  6. C. U. Douglas Thatcher
    C. U. DouglasJoined in the first year of Ricochet Ricochet Charter Member

    There’s a basic fallacy Progressives operate on: History is written by the winners.

    It’s not really true. History is written by those who have long survived the winners and their idiocy. The problem is that someone first has to survive it. Progressives are absolutely certain that they can make the world operate the way they want it to work, not the way it really works. They’re repeatedly beating their foreheads against the brick wall of reality hoping to make a dent.

    We’re the lucky ones who are saddled with cleaning up the mess.

    • #6
    • August 18, 2016, at 8:29 AM PDT
    • Like
  7. Old Bathos Moderator

    Are you suggesting that those cruel Republicans should roll back the health care gains for the lower and middle class and deny continued, expanded funding for health care just to fund tax breaks for the rich and corporations? Clearly the thoughtful, complex market-based approach Obama crafted has failed simply because the private sector did not step up and the only fair choice is now a public option. The market had its chance and it failed.

    I think even a repulsive figure like Hillary could sell the above BS to over 51% of the people (and 96% of the MSM). Barring some unforeseen intervening event, the ratchet is gonna turn left more than a few notches.

    • #7
    • August 18, 2016, at 8:50 AM PDT
    • Like
  8. Dave Sussman Podcaster

    Smart campaigns would run countless emotional daytime tv ads on the negative economic impact ACA has had on middle class families.

    Trump so far: #crickets.

    • #8
    • August 18, 2016, at 8:58 AM PDT
    • Like
  9. Austin Murrey Inactive

    I can tell this was from Reason, instead of the New York Times, because of the lack of the word “unexpectedly” when talking about problems with ACA.

    Also, use of numbers in a coherent fashion, but why quibble

    • #9
    • August 18, 2016, at 9:24 AM PDT
    • Like
  10. Doctor Robert Member

    Dave Sussman: Smart campaigns would run countless emotional daytime tv ads on the negative economic impact ACA has had on middle class families.

    “Smart campaigns” are in it to win. Mr Trump is not.

    • #10
    • August 18, 2016, at 9:30 AM PDT
    • Like
  11. DocJay Inactive

    My heart bleeds peanut butter for the large players insurance industry. They made a deal with the devil and can reap the whirlwind. I refuse retired health insurance CEO’s in my practice yet welcome trial lawyers. Truly, it’s happened.

    Whatever Clinton brings us will stink beyond belief. I am curious if anyone has thought about what Her stated plans are and what Her actual plans are. There’s a storm coming Dorothy.

    • #11
    • August 18, 2016, at 9:30 AM PDT
    • Like
  12. Owen Findy Member

    “Failing while it counts”: very good point.

    • #12
    • August 18, 2016, at 9:41 AM PDT
    • Like
  13. Austin Murrey Inactive

    Dave Sussman:Smart campaigns would run countless emotional daytime tv ads on the negative economic impact ACA has had on middle class families.

    Trump so far: #crickets.

    A good reason I would never be nominated for President is that I couldn’t resist trolling Obama and the Dems.

    “Some people say the ACA needs to be fixed, others are saying we need to go to a public option. I reject this false choice.”

    • #13
    • August 18, 2016, at 9:56 AM PDT
    • Like
  14. I Walton Member

    Liberals learn almost as fast as they fail, right? It’s never about the substance of the thing. Iraq was ideology or stupidity or indifference, but Obama care was designed to collapse into a single payer. It may yet do that.

    • #14
    • August 18, 2016, at 10:13 AM PDT
    • Like
  15. KC Mulville Inactive

    My job is a data designer, which means I have to take multiple moving parts and coordinate them into a funtioning unity. There’s a skill in such designing, like in any choreography … you have anticipate where each moving part is going to be at any one time, and direct its next move to be coherent with every other moving part.

    But this is what ObamaCare looks like to me:

    ah1… which leads to … ah2

    • #15
    • August 18, 2016, at 10:20 AM PDT
    • Like
  16. mollysmom Inactive

    BrentB67:Some credit where it is due. This problem was forseen by Obamacare’s architects and they built in federal reimbursement for the private insurers.

    The Republicans in the Senate, I believe led by Sen. Rubio, carved out the ability for the federal government to reimburse these losses. Absent that legislation this would not be a story.

    Hard to say what comes of the ACA, but given the number of Republicans intent on fixing it I expect this malignant tumor to fester much longer.

    Whether the insurance companies or we taxpayers pay for the losses, it’s still a big mess. I’m glad the Republicans took us off the hook so the failings of the ACA became more readily transparent.

    • #16
    • August 18, 2016, at 10:24 AM PDT
    • Like
  17. Paul Erickson Inactive

    mollysmom:

    BrentB67:Some credit where it is due. This problem was forseen by Obamacare’s architects and they built in federal reimbursement for the private insurers.

    The Republicans in the Senate, I believe led by Sen. Rubio, carved out the ability for the federal government to reimburse these losses. Absent that legislation this would not be a story.

    Hard to say what comes of the ACA, but given the number of Republicans intent on fixing it I expect this malignant tumor to fester much longer.

    Whether the insurance companies or we taxpayers pay for the losses, it’s still a big mess. I’m glad the Republicans took us off the hook so the failings of the ACA became more readily transparent.

    My memory may be faulty, but as I recall what Rubio did was not to take something away but to block extension of the reimbursement that was provided in the original legislation. Either way, it’s a win.

    (edited – twice! – for spelling. Bad dey.)

    • #17
    • August 18, 2016, at 10:53 AM PDT
    • Like
  18. BrentB67 Inactive

    Paul Erickson:

    mollysmom:

    BrentB67:Some credit where it is due. This problem was forseen by Obamacare’s architects and they built in federal reimbursement for the private insurers.

    The Republicans in the Senate, I believe led by Sen. Rubio, carved out the ability for the federal government to reimburse these losses. Absent that legislation this would not be a story.

    Hard to say what comes of the ACA, but given the number of Republicans intent on fixing it I expect this malignant tumor to fester much longer.

    Whether the insurance companies or we taxpayers pay for the losses, it’s still a big mess. I’m glad the Republicans took us off the hook so the failings of the ACA became more readily transparent.

    My memory may be faulty, but as I recall what Rubio did was not to take something away but to block extension of the reimbursement that was provided in the original legislation. Either way, it’s a win.

    (edited – twice! – for spelling. Bad dey.)

    You have a better memory and facts than me. I just remember that was the crowning legislative achievement.

    • #18
    • August 18, 2016, at 11:26 AM PDT
    • Like
  19. Gumby Mark (R-Meth Lab of Demo… Thatcher

    C. U. Douglas:There’s a basic fallacy Progressives operate on: History is written by the winners.

    It’s not really true. History is written by those who have long survived the winners and their idiocy. The problem is that someone first has to survive it. Progressives are absolutely certain that they can make the world operate the way they want it to work, not the way it really works. They’re repeatedly beating their foreheads against the brick wall of reality hoping to make a dent.

    We’re the lucky ones who are saddled with cleaning up the mess.

    “Rather than the often repeated adage that the victors write the history of an event, the story of anything is actually determined by the unswerving adoption of one version of it, and the telling of that version by a determined cadre of writers. In time, the version with the most persistent adherents becomes the “truth.” “– David & Jeanne Heidler in Henry Clay: The Essential American (2010)

    The unswerving version comes from the media, so Obama is the winner, no matter what. Even when reporting on specific problems with Obamacare, outlets like the NY Times treat them as minor flaws to be fixed, with the fixes involving more government intervention. You will never get the needed criticism of the very structure of Obamacare, as a top-down centralized solution.

    If Hillary is elected and the Democrats take control of Congress, we will have Obamacare reform in the shape of more government control.

    • #19
    • August 18, 2016, at 11:27 AM PDT
    • Like
  20. BrentB67 Inactive

    mollysmom:

    BrentB67:Some credit where it is due. This problem was forseen by Obamacare’s architects and they built in federal reimbursement for the private insurers.

    The Republicans in the Senate, I believe led by Sen. Rubio, carved out the ability for the federal government to reimburse these losses. Absent that legislation this would not be a story.

    Hard to say what comes of the ACA, but given the number of Republicans intent on fixing it I expect this malignant tumor to fester much longer.

    Whether the insurance companies or we taxpayers pay for the losses, it’s still a big mess. I’m glad the Republicans took us off the hook so the failings of the ACA became more readily transparent.

    We are off the hook in the short run.

    Your bill is in the mail.

    • #20
    • August 18, 2016, at 11:28 AM PDT
    • Like
  21. Gumby Mark (R-Meth Lab of Demo… Thatcher

    Austin Murrey:I can tell this was from Reason, instead of the New York Times, because of the lack of the word “unexpectedly” when talking about problems with ACA.

    Also, use of numbers in a coherent fashion, but why quibble

    Speaking of which, on July 12, the Times ran “Cost, Not Choice, Is Top Concern of Health Care Customers” containing this priceless gem:

    The unexpected laser focus on price has contributed to hundreds of millions of dollars in losses among the country’s top insurers, as fewer healthy people than expected have signed up.

    I wrote more about the article (and two other recent Times pieces) here.

    • #21
    • August 18, 2016, at 11:34 AM PDT
    • Like
  22. J Climacus Member

    Unfortunately progressives have a different measure of success and failure. The point of Obamacare was never to provide more cost effective insurance or get more people covered, it was to nationalize the health care sector. The inevitable “failures” we have been experiencing simply provide reasons to get the government even more involved, until the point we have full-blown socialized medicine.

    That’s the joy of the inevitable quality of history in Marxist terms: Whatever happens, it’s always a reason to further the revolution. Those who measure “success” or “failure” in classical terms, e.g. with respect to the immediate practical consequences of action, don’t understand how Marxists like Obama think of themselves and history.

    • #22
    • August 18, 2016, at 11:47 AM PDT
    • Like
  23. Joseph Stanko Coolidge
    Joseph StankoJoined in the first year of Ricochet Ricochet Charter Member

    Dave Sussman:Smart campaigns would run countless emotional daytime tv ads on the negative economic impact ACA has had on middle class families.

    Trump so far: #crickets.

    That would require money, something the Trump campaign seems to have very little of.

    Meanwhile I just saw a Hillary ad featuring Letterman interviewing Trump and pointing out that his shirts were made in Bangladesh and his ties in China. I’ve seen this ad 3 times in the past week.

    • #23
    • August 18, 2016, at 1:27 PM PDT
    • Like
  24. Dave Sussman Podcaster

    Joseph Stanko:

    Dave Sussman:Smart campaigns would run countless emotional daytime tv ads on the negative economic impact ACA has had on middle class families.

    Trump so far: #crickets.

    That would require money, something the Trump campaign seems to have very little of.

    Meanwhile I just saw a Hillary ad featuring Letterman interviewing Trump and pointing out that his shirts were made in Bangladesh and his ties in China. I’ve seen this ad 3 times in the past week.

    This is the first time I remember not watching the Olympics except for maybe a half hour of Phelps last week. In that 30 minutes I saw 3 Hillary Ads. Any campaign that didn’t plan to advertise during the Olympics is suspect at best, more likely negligent.

    There will be countless post mortems on Trump’s general campaign, and as of right now they will all be case studies of what not to do.

    • #24
    • August 18, 2016, at 3:10 PM PDT
    • Like
  25. tigerlily Member

    J Climacus:Unfortunately progressives have a different measure of success and failure. The point of Obamacare was never to provide more cost effective insurance or get more people covered, it was to nationalize the health care sector. The inevitable “failures” we have been experiencing simply provide reasons to get the government even more involved, until the point we have full-blown socialized medicine.

    Exactly.

    • #25
    • August 18, 2016, at 6:21 PM PDT
    • Like

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